1. High Potential Employees

2. Objectives Examine tools and frameworks, and gain new insights into how to: Accurately identify high potentials Accelerate high-potential development Enhance your organization's ability to engage and retain high potentials Introduce Krannert’s new approach to high potential development for Professional Masters students And your potential involvement!

3. “ Of all the decisions an executive makes, none is as important as the decisions about people, because they determine the performance capacity of the organization.” – Peter Drucker

4. Assessment of Leadership Potential Exceeds expectations High Achiever: Reward and engage Solid Performer: Reinforce and engage Achiever: Stretch in role or develop for next Performer: Engage and develop Not meeting expectations Differentiating Performance and Potential Performer: Engage and develop High Achiever: Reward and engage Solid Performer: Reinforce and engage Achiever: Stretch in role or develop for next At Risk: Address performance Meets expectations Rating of Performance Performer: Engage and develop Low Performer: Address fit High Flyer: Prepare for next role HiPo: Stretch; Plan next step HiPo: Assess; Coach or move At potential High Some

5. Why Do We Need a New Approach to High Potentials? Critical organizational need 56% of organizations report a significant shortage of leaders to fill key positions 7 31% more predict a shortage in the next few years 7 46% have no systemic process to identify and develop candidates for key leadership positions 8

6. Why Do We Need a New Approach to High Potentials? The current approach is not working for organizations... Up to 40% of high-potential promotions end in failure 2 40% Only 15% are satisfied with their high-potential practices 1 15%

7. Why Do We Need a New Approach to High Potentials?... Or for high potentials At risk of derailment 3 25% Intend to leave their company within a year 2 25% Do not trust senior management 2 40% Feel disengaged and do not put in their full effort at work 2 30%

8. High-Potential Experience Cycle ™ Organization’s Process 1.Forecast talent needs and requirements 2.Accurately identify and engage high potentials 3.Accelerate development for high potentials 4.Manage transitions into new roles 5.Address governance, communication, and evaluation 3 Develop 4 Transition 2 Identify1 Plan 5 Manage High-Potential Leader’s Experience Organization’s High-Potential Process High-Potential Leader’s Experience 1.Assess and plan for the future 2.Commit and engage 3.Develop and learn 4.Transition and perform in new role 5.Manage work and non-work priorities

9. Assess and Plan for the Future 1. Clarify goals, values, and where you want to go 2. Assess capabilities and development needs 3. Assess career options and opportunities Forecast Talent Needs and Requirements 1. Identify leadership roles and positions to be targeted 2. Define purpose, priorities, challenges, needs, and requirements for each role 3. Define time frames: When do you need them? 4. Consider the supply: Hire or develop? Step 1: Plan for the Future

10. Step 2: Identifying High Potentials: How Difficult Is This? “Many measures of potential are worse than chance” 4 At most, 30 percent of high performers are likely to be high potentials 2 For people with two bosses, their bosses disagree more than half the time over the person’s potential to advance 5

11. Accurately Identify and Engage High Potentials 1.Define required attributes of high- potential leaders 2.Identify high-potential candidates 3.Inform and engage 4.Align with HR systems (e.g., succession, selection/ promotion) Commit and Engage 1.Understand what it means 2.Evaluate priorities 3.Commit to invest time and energy 4.Maintain humility and perspective Step 2: Identify High Potentials

12. Develop and Learn 1.Prepare development plans 2.Learn strategies and skills for self- directed development 3.Adopt attitude of learning 4.Engage in development activities and on-the-job learning 5.Monitor and measure progress Accelerate Development for High Potentials 1.Drive individual development 2.Drive systemic development processes 3.Reinforce a learning culture Step 3: Develop and Prepare for Future Roles

13. Over 25% 0f High Potentials at Risk of Derailment Smart, driven, ambitious, push hard to get things done Never learn to delegate and work through others Brilliant ideas, quick to reach conclusions Assume they are right and appear arrogant Never learn to influence, compromise, collaborate, enlist others Advance rapidly and don’t learn the lessons at each level that others do Others eventually derail because they were misidentified High performing, likeable leaders who avoid conflict Smart, creative individual contributors

14. Do they know what they need to develop? INSIGHT Are they willing to invest the time and energy it takes? MOTIVATION Do they have the skills and knowledge required for success? CAPABILITIES Do they take advantage of opportunities to use their skills where it matters? REAL-WORLD PRACTICE Do they feel accountable to use their capabilities to improve performance and results? ACCOUNTABILITY PDI Development Pipeline ® Necessary Conditions for Learning How D0 You Accelerate Development for High Potentials?

15. Reasons High Potentials May Not Be Good Learners... Insight Smart, self-confident; may dismiss feedback Most feedback is positive; may not get well-rounded perspective Actual negatives may be avoided to avoid demotivating Motivation Intense task focus; channel energy into achieving (not learning) Willing to work long hours to achieve Capabilities Advance rapidly; may not learn all the lessons that others do Action-oriented; rarely reflect on what works and what doesn’t Real-world Practice Move so fast they miss opportunities Accountability They get promoted anyway

16. 1. Holistic, whole-person development 2. Long-term, future focus 3. Visibility 4. Relationships and networking 5. Learning-to-learn 6. Versatility 7. Challenge and stretch 8. Feedback rich 1.Holistic, whole-person development 2.Long-term, future focus 3.Visibility 4.Relationships and networking 5.Learning to Learn 6.Versatility 7.Challenge and Stretch 8.Feedback-Rich

17. Provide Four Types of Valuable Learning Experiences

18. Step 4: Transition into New Roles: Major Risks Transitions are danger zones 40% of high-potential promotions fail 2 Why? Never learned how to manage transition process Peter Principle; high performers who have been misidentified Lack of support for big stretch assignments Lack of clarity around expectations Radically different success factors in new role

19. Transition and Perform In New Role 1.Evaluate offer and decide whether to accept position 2.Clarify expectations, priorities, and objectives for the role 3.Manage your Five Agendas as a leader  Business agenda  Leadership agenda  Relationship agenda  Personal agenda  Learning agenda Manage Transitions into New Roles 1.Assess readiness and fit for relevant roles 2.Select based on fit and opportunity for continued development 3.Support transitions 4.Reset expectations for the leader 5.Maintain focus on engaging and meeting the broader needs of the leader Step 4: Transition into New Roles

20. Manage Work and Non-work Priorities 1.Develop an authentic, holistic vision for yourself and your life 2.Make appropriate choices to integrate work and non-work priorities  Family  Health and fitness  Financial  Community and social life  Recreation and leisure  Spiritual Address Governance, Communication, and Evaluation 1.Set up management system and programs 2.Clarify policies and practices 3.Create and implement a communication plan 4.Ensure management support and alignment 5.Define employee “brand” and value proposition and how they apply to high-potential leaders 6.Evaluate impact and effectiveness Step 5: Manage the Broader Context